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The basics of success:
Understanding sponsored ads

Previously, we provided an introduction to Amazon Advertising. Now let's take a closer look at sponsored ads and Stores. We've designed this guide to answer all the questions you may have. How much do they cost? How long does it take to create a campaign? How does advertising help you to increase brand awareness and increase sales on Amazon?

Introduction

What are sponsored ads? How do they work?

Sponsored ads target customer queries or products, and occupy high-visibility placements on Amazon (for example, on the first search result page and on product pages).

Icon of a Sponsored Product ad on desktop

Objectives: increase sales, attract traffic to product pages

Sponsored Products ads help promote specific products in search results and relevant product pages. When a customer clicks an ad, they are redirected to the corresponding product page.

Sponsored Products is available to all professional sellers and vendors.

Objectives: boost brand awareness, increase sales across the entire catalog

This solution is available to vendors and sellers registered in Amazon Brand Registry. It allows you to create ads that include at least three products, along with the brand logo and a custom headline.

Customers can be redirected from your Sponsored Brands ad to a selection of products or to the brand’s Store.

Objectives: maximize engagement through a tailor-made brand experience, build customer loyalty

Stores is a free self-service solution that aims to promote a brand and its products in an engaging and interactive way. A Store allows you to showcase your best sellers and seasonal collections, publish videos or tell the story of your brand. The user experience can be customized using automatic widgets.

Stores is available to vendors and sellers registered in Amazon Brand Registry.

Budget

Budget is a big topic for most advertisers. After all, you’re growing a business and want to know you’re spending money wisely. It’s natural to have some questions about how much advertising will cost you.

Here, we help answer those questions by showing you what’s true and false when it comes to budget.

True or False: There’s an up-front fee to advertise.

False: There’s no up-front fee to advertise, and no monthly fee either. When you create a sponsored ads campaign, you choose your own budget as well as the amount you want to bid for a click. You’ll only pay when a customer clicks on your ad, and you’ll never be charged more than your bid amount.

True or False: Advertising is expensive.

False: Sponsored ads are designed to work with your individual budget. You’ll want to choose one that’s high enough to help you reach your goals, but that will vary from advertiser to advertiser. In general, you’ll see results—ad impressions, clicks, and sales—with a budget of just $10 a day.

Our main piece of advice: Never set a budget you’re not comfortable with. You can always start smaller and then invest more as you find what works best for your business.

On average, sellers who launch an ad campaign with a budget of at least $5 have up to 140% more ad-attributed sales than those who set a budget lower than $5.*

*Within their first 60 days of advertising with Sponsored Products.

True or False: I get to choose my budget.

True: Sponsored ads are designed to fit every budget, and to give you full control over it.

With Sponsored Products, you’ll set a daily budget, or the maximum amount you want to spend on advertising per day. With Sponsored Brands, you have the choice to set a daily budget or a campaign-level budget, the maximum amount you’re willing to spend over the course of the campaign.

True or False: I’ll be able to adjust my budget after I set it.

True: That’s right. You can always change your budget, no matter the reason.

If you set a daily budget, you can increase it or decrease it at any time. Note that you can only increase campaign-level budgets, so if you think there’s a chance you might want to lower your budget before your campaign ends, consider choosing a daily budget for more flexibility.

True or False: I’ll be charged for how many people view my ads.

False: Sponsored ads are cost-per-click, meaning you’re charged only when a customer clicks on your ad.

Getting started


How long does it take to create and launch your first advertising campaign? You might be surprised to hear that you can do it in a matter of minutes.

You might be thinking, “That’s great, but I’ve never created an ad campaign before. It’ll probably take me a lot longer.” Here are some things to know:

• Our ads are designed for everyone, meaning you don’t need to have any advertising experience to build them successfully.

• They’re schedule-friendly—it takes about 5 minutes to create a Sponsored Products campaign, and these ads launch almost instantly.

• You’ll find real-time information within campaign manager, where you’ll create your ads.

“I kept dancing around advertising because it seemed a little daunting. It turns out it was really easy, and I saw results almost immediately: my sales increased in my first 3 months of advertising.”

- Janice, US Amazon seller
“Our main business goal is to drive as much revenue as possible. Sponsored Products is super easy to use, and effective. You can measure how your ad spend is directly correlating with sales.”

- Matthew Clarke, US Amazon advertiser

Save time and simplify campaign management


1) Instead of making changes (like updating keywords) one by one in campaign manager, use the bulk operations feature to download a bulk file, make edits to campaigns, and then upload for processing.

2) Use portfolios to organize your campaigns by brand, category, product, or season–whatever makes the most sense for you and your business. Portfolios also include automatic budget capping and simple invoicing.

3) Want to avoid making manual updates to your Sponsored Products bids? With dynamic bidding, Amazon will automatically adjust your bid based on the likelihood of conversion.

4) Get a clear understanding of your performance, quickly, within campaign manager. Here, you’ll see a single view of your ad campaigns, so you can easily track your total spend, total sales, and more.

Advertiser tips


Hear how current Amazon advertisers use sponsored ads to attract more customers, increase sales, and meet their individual goals.

Success with Sponsored Products

6 sellers describe their experiences using Sponsored Products.

Vermont Teddy Bear case study

The New England brand has steadily grown their Amazon business by using sponsored ads and Stores to introduce more shoppers to their unique toy collections.

“Our Store gives our brand a permanent place on Amazon. Linking our Sponsored Brands ad to our Store has been profitable.”
-Jason Baer, VP of Sales & Marketing, Vermont Teddy Bear

Popfunk case study

Popfunk changed the business model for the pop culture licensing industry when it became the first US company to print on-demand apparel—and again when they started selling on Amazon. Learn how sponsored ads, however, helped them see their biggest wins to date.

“In six months, we were able to increase monthly sales on Amazon. By the time we made it to our first holiday sales season, the impact of Amazon Advertising on our business goals was clear.”
- Trevor George, President, Popfunk

Ready to get started?

Already a registered advertiser? Sign in here.


Learn more about our other advertising products, such as Amazon DSP and video ads, by visiting The basics of success: Beyond sponsored ads.

Still have questions? Visit our frequently asked questions.